Oct 21, 2019 / 15:50

Vietnam takes no new loans from Japan in April-September 2019

The Hanoitimes - The Japan International Cooperation Agency (JICA) gave no reasons for the situation which lasted from the fiscal year 2018.

No additional credits from Japan were pledged for Vietnam in the six-month fiscal period starting April 2019, the Japan International Cooperation Agency (JICA) has said. 
JICA's press conference in Hanoi last week. Photo: JICA
JICA's press conference in Hanoi last week. Photo: JICA

In fiscal year 2018, there were either no new credit from Japan for Vietnam due to Vietnamese policies on curbing public debt and cumbersome administrative procedures, according to JICA. 

There are total 28 operational official development assistance (ODA) projects in Vietnam while the gross disbursement reached JPY8.798 billion (US$81 million) during the period, JICA said in a report released last week. 

So far, the number of technical cooperation projects hits 34, including one complete and two newly-launched. 

The number of non-refundable projects is four, including a new one. 

The portfolio of projects proposed by Japanese companies has expanded to 55, including four complete and 19 new projects. 

Meanwhile, there have been 28 development partnership programs, including three finished and 10 new ones. 

Focus in six-month fiscal period 

Chief Representative of JICA’s Vietnam Office Konaka Tetsuo at the press conference in Hanoi last week. Photo: Linh Pham
Chief Representative of JICA’s Vietnam Office Konaka Tetsuo at the press conference in Hanoi last week. Photo: Linh Pham

The Japanese government’s funding, through JICA, has focused on three main fields, namely economic growth and competitiveness enhancement, support to vulnerable people, and state governance improvement in the first fiscal part of 2019, Chief Representative of JICA’s Vietnam Office Konaka Tetsuo said at a press conference last week. 

Economic development projects

(1) Infrastructure: Building infrastructure for Lach Huyen Port in the northern city of Haiphong; Data Collection Surveys in infrastructure and transportation in Mekong Delta; Supporting to set up a firm to operate Metro Line No.1 Project in Ho Chi Minh City; Building infrastructure in Hoa Lac Hi-tech Zone and calling for Japanese investment in the park; Solid waste treatment in aquaculture in Mekong Delta; Funding floating solar power farm in central Vietnam; Calling for investment in Ho Chi Minh City.

(2) Manpower development: Supporting the training at Vietnam-Japan University; Training high-ranking executives in through the Vietnam-Japan Cooperation Center (VJCC); Providing the Human Resource Development Scholarship by Japanese Grant Aid (JDS); Conducting KAIZEN-based survey to support project on infrastructure development to serve the operation of small- and medium-sized enterprises (SMEs).

(3) Market-oriented economy: Completing regulatory framework in competition; Improving capacity for the State Bank of Vietnam in monetary policies and economic analysis and forecast. 

(4) Agriculture: Planning on agriculture development in the central province of Nghe An; Conducting surveys to help Japanese SMEs to invest in the agriculture sector in Vietnam; Supplying equipment for agricultural quarantine in a non-refundable aid project. 

Supporting vulnerable people

The funding focused on (1) healthcare; (2) response to climate change and environment improvement, and natural disaster prevention and control, water management, green growth, and policy consultancy on environmental issues; (3) gender equality and anti-human trafficking. 

State governance     

A number of projects have focused on training high-ranking officials and improving capacity of state cadres with an aim to raise Vietnam’s competitiveness for people in charge of administrative reforms, e-government, and cyber security.